Markdown Time for Perishables Based on Dynamic Quality Evaluation for Complex Data Analysis

Jiang-Tao Wang,Jian-Jun Yu,Yu-Hsi Yuan,Sang-Bing Tsai,Shu-Fen Zhang,Yuanpeng Zhang

doi:10.1155/2021/6695626

Abstract

Perishables’ freshness is a dynamic state, which can be captured by statistical big data based on advanced product identification and sensory technologies. A time-based markdown strategy model is proposed to consider the markdown strategy in maximizing performance. The results showed that demand uncertainty would force them to implement a markdown strategy in advance, merchants’ profit and initial inventory are sensitive to the uncertainty and deterioration rate of perishable quality, and markdown time has a regulatory effect on initial inventory.

Highlights

Freshness is becoming a quality criterion of great importance to consumers regarding perishable products (Peneau et al [1])
The results suggest that market uncertainty may not always be detrimental to merchants and may even increase the ultimate benefit to them. Both the merchant’s profit and initial inventory are sensitive to the market demand uncertainty while the markdown time is not
By introducing a time-variant market demand model, we consider the relationship between the optimal markdown time and the optimal initial inventory under uncertain market demand

Summary

Introduction

Freshness is becoming a quality criterion of great importance to consumers regarding perishable products (Peneau et al [1]). How to effectively implement markdown strategies consisting of time and inventory based on the dynamic shelf life information should be an important issue in perishable operation management, especially in an uncertain demand environment. A time-sensitive markdown strategy is employed to consider the markdown time challenge based on the timevariance market sale model This time-variance markdown model can capture the dynamic quality evolution characteristics. The results suggest that market uncertainty may not always be detrimental to merchants and may even increase the ultimate benefit to them Both the merchant’s profit and initial inventory are sensitive to the market demand uncertainty while the markdown time is not.

Literature Review

Model Description

The Markdown Strategy under Deterministic Market Demand

The Markdown Strategies under Uncertain Market Demand

Numerical Analysis

Conclusion